XML 36 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Allowance for Credit Losses on Loans and Off-Balance Sheet Credit Exposures (Tables)
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Schedule Of Allowance For Loan Losses, By Class
Changes in the ACL on loans, by class of loans, for the three and six months ended June 30, 2023 were as follows:
For The Three Months
Ended June 30, 2023		Balance, March 31, 2023Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, June 30, 2023
(Dollars in thousands)
Non-revolving residential real estate$2,071 $— $— $121 $2,192 
Revolving residential real estate143 — — 1 144 
Residential real estate2,214 — — 122 2,336 
Commercial construction real estate1,713 — — (188)1,525 
Residential construction real estate148 — — 1 149 
Construction real estate1,861 — — (187)1,674 
Non-residential commercial real estate2,186 — — (34)2,152 
Multi-family residential real estate221 — — 11 232 
Commercial real estate2,407 — — (23)2,384 
Commercial368 — — (14)354 
Consumer5 (4)1 3 5 
Municipal79 — — (52)27 
Total$6,934 $(4)$1 $(151)$6,780 
For the Six Months
Ended June 30, 2023		Balance, December 31, 2022Impact of Adoption of ASU No. 2016-13Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, June 30, 2023
(Dollars in thousands)
Non-revolving residential real estate$2,294 $(270)$— $— $168 $2,192 
Revolving residential real estate123 25 — — (4)144 
Residential real estate2,417 (245)— — 164 2,336 
Commercial construction real estate611 982 — — (68)1,525 
Residential construction real estate421 (290)— — 18 149 
Construction real estate1,032 692 — — (50)1,674 
Non-residential commercial real estate2,931 (757)— — (22)2,152 
Multi-family residential real estate1,004 (780)— — 8 232 
Commercial real estate3,935 (1,537)— — (14)2,384 
Commercial301 191 — — (138)354 
Consumer10 (5)(4)1 3 5 
Municipal95 (42)— — (26)27 
Unallocated549 (549)— — — — 
Total$8,339 $(1,495)$(4)$1 $(61)$6,780 
Changes in the ACL on loans, by class of loans under the incurred loss methodology, for the three and six months ended June 30, 2022 were as follows:
For The Three Months
Ended June 30, 2022		Balance, March 31, 2022Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, June 30, 2022
(Dollars in thousands
Residential real estate$2,224 $— $— $15 $2,239 
Construction real estate843 — — 114 957 
Commercial real estate3,997 — — 7 4,004 
Commercial289 (1)2 28 318 
Consumer10 — 3 (3)10 
Municipal88 — — (61)27 
Unallocated885 — — (100)785 
Total$8,336 $(1)$5 $— $8,340 
For the Six Months
Ended June 30, 2022		Balance, December 31, 2021Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, June 30, 2022
(Dollars in thousands
Residential real estate$2,068 $— $— $171 $2,239 
Construction real estate837 — — 120 957 
Commercial real estate4,122 — — (118)4,004 
Commercial275 (1)2 42 318 
Consumer11 (1)4 (4)10 
Municipal86 — — (59)27 
Unallocated937 — — (152)785 
Total$8,336 $(2)$6 $— $8,340 
Schedule of Fair Value, off-Balance-Sheet Risks The Company's activity in the ACL on off-balance sheet credit exposures for the three and six months ended June 30, 2023 was as follows:
For The Three Months Ended June 30,For the Six Months Ended June 30,
20232023
ACL on Off-Balance Sheet Credit Exposures(Dollars in thousands)
Balance, Beginning of Period$1,442 $— 
Impact of adoption of ASU No. 2016-13— 1,458 
Credit loss expense55 39 
Balance, June 30, 2023$1,497 $1,497 
Schedule Of Financing Receivable Credit Quality Indicators
The following table summarizes the Company's loans by year of origination and by loan ratings applied by management to the Company's loans by class as of June 30, 2023:
20232022202120202019PriorRevolvingTotal
Residential Real Estate(Dollars in thousands)
Pass$41,719 $116,020 $87,138 $30,491 $9,311 $56,951 $— $341,630 
Satisfactory/Monitor654 7,073 5,782 2,328 251 5,752 — 21,840 
Substandard— — — 35 — 386 — 421 
Non-revolving residential real estate42,373 123,093 92,920 32,854 9,562 63,089 — 363,891 
Pass— — — — — — 15,282 15,282 
Satisfactory/Monitor— — — — — — 1,490 1,490 
Substandard— — — — — — 63 63 
Revolving residential real estate— — — — — — 16,835 16,835 
Construction Real Estate
Pass2,052 5,801 2,936 676 1,976 1,064 — 14,505 
Satisfactory/Monitor5,146 10,975 22,449 292 283 234 — 39,379 
Substandard— — — — — — — — 
Commercial construction real estate7,198 16,776 25,385 968 2,259 1,298 — 53,884 
Pass7,687 25,180 3,613 — — — — 36,480 
Satisfactory/Monitor106 5,012 3,997 1,009 — — — 10,124 
Substandard— — — — — — — — 
Residential construction real estate7,793 30,192 7,610 1,009 — — — 46,604 
Commercial Real Estate
Pass1,808 40,628 37,853 17,945 24,368 63,187 16,256 202,045 
Satisfactory/Monitor10,062 34,564 2,613 6,469 6,957 20,776 1,462 82,903 
Substandard— — — 1,837 — 2,474 120 4,431 
Non-residential commercial real estate11,870 75,192 40,466 26,251 31,325 86,437 17,838 289,379 
Pass256 4,348 10,490 2,131 8,358 35,109 — 60,692 
Satisfactory/Monitor852 6,435 10,889 5,725 10,121 2,922 — 36,944 
Substandard— — — — — 1,378 — 1,378 
Multi-family residential real estate1,108 10,783 21,379 7,856 18,479 39,409 — 99,014 
Pass2,154 6,857 4,648 974 3,355 14,497 3,437 35,922 
Satisfactory/Monitor1,102 1,470 439 563 196 558 752 5,080 
Substandard— — — — — 5 245 250 
Commercial3,256 8,327 5,087 1,537 3,551 15,060 4,434 41,252 
Pass1,088 521 195 173 243 236 26 2,482 
Satisfactory/Monitor86 4 — — — — — 90 
Substandard— — — — — — — — 
Consumer1,174 525 195 173 243 236 26 2,572 
Pass5,546 3,500 1,164 6,769 191 4,935 — 22,105 
Satisfactory/Monitor— — — — — — — — 
Substandard— — — — — — — — 
Municipal5,546 3,500 1,164 6,769 191 4,935 — 22,105 
Total Loans$80,318 $268,388 $194,206 $77,417 $65,610 $210,464 $39,133 $935,536 
The following table summarizes the loan ratings applied by management to the Company's loans by class, under the incurred loss methodology, as of December 31, 2022:
December 31, 2022Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalTotal
(Dollars in thousands)
Pass$328,885 $47,356 $258,175 $36,338 $2,197 $87,980 $760,931 
Satisfactory/Monitor21,429 49,206 111,077 4,368 7 — 186,087 
Substandard2,119 58 8,695 267 — — 11,139 
Total$352,433 $96,620 $377,947 $40,973 $2,204 $87,980 $958,157 
Schedule of Financing Receivable, Nonaccrual
A summary of current and past due loans as of June 30, 2023 follows:
June 30, 202330-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(Dollars in thousands)
Residential real estate
Non-revolving residential real estate$— $283 $48 $331 $363,560 $363,891 
Revolving residential real estate— — 16 16 16,819 16,835 
Construction real estate
Commercial construction real estate— — — — 53,884 53,884 
Residential construction real estate— — — — 46,604 46,604 
Commercial real estate
Non-residential commercial real estate— — 120 120 289,259 289,379 
Multi-family residential real estate— — — — 99,014 99,014 
Commercial— — — — 41,252 41,252 
Consumer— 3 — 3 2,569 2,572 
Municipal— — — — 22,105 22,105 
Total$— $286 $184 $470 $935,066 $935,536 

A summary of current and past due loans as of December 31, 2022, under the incurred loss methodology, follows:
December 31, 202230-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(Dollars in thousands)
Residential real estate$1,724 $79 $289 $2,092 $350,341 $352,433 
Construction real estate535 — — 535 96,085 96,620 
Commercial real estate515 2,087 34 2,636 375,311 377,947 
Commercial7 160 — 167 40,806 40,973 
Consumer7 — — 7 2,197 2,204 
Municipal— — — — 87,980 87,980 
Total$2,788 $2,326 $323 $5,437 $952,720 $958,157 
A summary of nonaccrual loans as of June 30, 2023 follows:
June 30, 2023NonaccrualNonaccrual With No Allowance for Credit Losses90 Days and Over and Accruing
Residential real estate(Dollars in thousands)
Non-revolving residential real estate$— $— $48 
Revolving residential real estate— — 16 
Commercial real estate
Non-residential commercial real estate1,957 1,957 — 
Total$1,957 $1,957 $64 

A summary of nonaccrual loans as of December 31, 2022, under the incurred loss methodology, follows:
December 31, 2022NonaccrualNonaccrual With No Allowance for Credit Losses90 Days and Over and Accruing
(Dollars in thousands)
Residential real estate$103 $— $186 
Construction real estate6 6 — 
Commercial real estate2,102 — — 
Total$2,211 $6 $186 
Schedule Of Composition of Net Loans
The composition of Net loans as of the balance sheet dates, by regulatory call report code segmentation based on underlying collateral or purpose for certain loan types, was as follows:
June 30,
2023		December 31,
2022
(Dollars in thousands)
Residential real estate
Non-revolving residential real estate$363,891 $335,470 
Revolving residential real estate16,835 16,963 
Construction real estate
Commercial construction real estate53,884 56,501 
Residential construction real estate46,604 40,119 
Commercial real estate
Non-residential commercial real estate289,379 282,397 
Multi-family residential real estate99,014 95,550 
Commercial41,252 40,973 
Consumer2,572 2,204 
Municipal22,105 87,980 
    Gross loans935,536 958,157 
ACL on loans(6,780)(8,339)
Net deferred loan costs1,556 1,336 
    Net loans$930,312 $951,154 
The following table presents collateral dependent loans by loan class and collateral type as of the balance sheet dates:
June 30, 2023December 31, 2022
Real EstateReal Estate
(Dollars in thousands)
Non-residential commercial real estate$1,957 $2,068 
Schedule Of Impaired Financing Receivables
The following table provides information with respect to impaired loans by class of loan as of and for the year ended December 31, 2022, prior to the adoption of CECL:
December 31, 2022For The Year Ended
December 31, 2022
Recorded Investment
(1)		Principal Balance
(1)		Related AllowanceAverage Recorded InvestmentInterest Income Recognized
(Dollars in thousands)
Residential real estate$190 $200 $21 
Commercial real estate2,068 2,068 9 
With an allowance recorded2,258 2,268 30 
Residential real estate1,283 1,787 — 
Construction real estate58 83 — 
Commercial real estate5,865 6,403 — 
Commercial7 7 — 
With no allowance recorded7,213 8,280 — 
Residential real estate1,473 1,987 21 1,570 101 
Construction real estate58 83 — 116 27 
Commercial real estate7,933 8,471 9 5,822 185 
Commercial7 7 — 8 1 
Total$9,471 $10,548 $30 $7,516 $314 
____________________
(1)Does not reflect government guaranties on impaired loans as of December 31, 2022 totaling $423 thousand.
Schedule of Financing Receivable, Modified The following tables summarize loan modifications to borrowers experiencing financial difficulty by loan class, type of modification and the financial effect of the modifications as of and for the three and six months ended June 30, 2023:
Interest Rate Reduction
Three Months Ended
June 30, 2023		Six Months Ended
June 30, 2023
Amortized Cost Basis% of Loan ClassAmortized Cost Basis% of Loan ClassFinancial Effect
(Dollars in thousands)
Non-residential commercial real estate$— — %$413 0.14 %
Reduced weighted average contractual interest rate from 8.75% to 6.85%
Multi-family residential real estate— — %446 0.45 %
Reduced weighted average contractual interest rate from 9.25% to 7.75%

Payment Delay
Three Months Ended
June 30, 2023		Six Months Ended
June 30, 2023
Amortized Cost Basis% of Loan ClassAmortized Cost Basis% of Loan ClassFinancial Effect
(Dollars in thousands)
Non-residential commercial real estate$3,383 1.17 %$3,383 1.17 %
Modification allowed for 7 months of interest only payments with remaining balances due at maturity.
The following table presents the performance of loans as of June 30, 2023 that have been modified in the last twelve months:
June 30, 2023CurrentPast Due
30-89 Days		Past Due 90 Days and Over
(Dollars in thousands)
Non-residential commercial real estate$3,796 $— $— 
Multi-family residential real estate446 — —